Halma (HLMA) H2 23/24 earnings summary

Executive summary

• Achieved record revenue of £2,034m (over GBP 2 billion), up 10% year-over-year, and record profit, with strong cash generation and high returns.

• Delivered strong organic and reported profit growth, with EBIT margin at 20.8% and return on sales at 19.5%.

• Marked the 45th consecutive year of a dividend increase of 5% or more, with a 7% rise to 21.61p.

• Substantial investments made in R&D (£107m) and acquisitions (£292m on 8 deals) to support future growth.

• Confident in delivering sustainable growth, supported by a robust and agile business model.

Financial highlights

• Revenue grew 10% to £2,034m; organic revenue up 7.9%.

• Adjusted EBIT up 12% to £424m, margin at 20.8%; adjusted profit before tax up 10% to £396.4m.

• Cash conversion at 103%, well above the 90% KPI target; net debt to EBITDA at 1.35x.

• Dividend spend was £78.2m, up from £73.3m in FY23.

• EPS growth of 7.9%, impacted by higher interest, tax, and FX; would have been 13% without these headwinds.

Outlook and guidance

• Order intake ahead of both revenue and prior year, supporting positive outlook for FY 2025.

• Expecting good organic constant currency revenue growth and adjusted EBIT margin around 21% for FY 2025.

• Well positioned for further progress, supported by a healthy M&A pipeline and strong balance sheet.

• FX headwind of about 1% anticipated in FY 2025.